Based on
information obtained from the U.S. Department of Commerce, Bureau of Economic
Analysis, Table 4, dated May 2004, the inflation factor for 2003 is 1.017 (1.7%). Please complete the form on the reverse side
of this letter for each active and/or inactive landfill you own and/or operate,
and return it to the Financial
Assurances Section at the above address by June 1, 2004. We are
providing this form for your convenience.

Following are previous years’ inflation factors:

1989: 1.041

1990: 1.054

1991: 1.036

1992: 1.033

1993: 1.026

1994: 1.020

1995: 1.024

1996: 1.020

1997: 1.020

1998: 1.010

1999: 1.015

2000: 1.021

2001: 1.022

2002: 1.011

If you have not made the previous years’ adjustments, please do so before calculating the 2004 adjusted total cost estimates. Apply the inflation factor for 1989 to your 1988 initial certified total closure and postclosure maintenance cost estimates. Apply subsequent inflation factors to the previous year’s total cost estimate.

Annual Inflation Factor 2003

Multiply each cost estimate by the inflation factor to determine the new adjusted cost estimates as illustrated below.

The ABC Landfill’s cost estimate for closure in 2003 was $2,000,000. Using the 2003 inflation factor of 1.017, they recalculated their adjusted closure cost for 2004 to $2,034,000. Their 30-year cost estimate for Postclosure maintenance in 2003 was $1,500,000. Using the 2003 inflation factor of 1.017, their adjusted postclosure maintenance cost for 2004 is $1,525,500. Their cost estimate for corrective action in 2003 was $1,000,000.

I certify under penalty of perjury under the laws of the State of California that the information in this document is true and correct to the best of my knowledge and is being provided in accordance with the regulations.